Chesapeake Energy Corp (CHK): Today's Featured Energy Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Chesapeake Energy ( CHK) pushed the Energy industry lower today making it today's featured Energy laggard. The industry as a whole closed the day down 0.2%. By the end of trading, Chesapeake Energy fell 23 cents (-1.2%) to $18.50 on average volume. Throughout the day, 12 million shares of Chesapeake Energy exchanged hands as compared to its average daily volume of 12.9 million shares. The stock ranged in price between $18.40-$18.74 after having opened the day at $18.67 as compared to the previous trading day's close of $18.73. Other companies within the Energy industry that declined today were: Syntroleum Corporation ( SYNM), down 7.7%, Houston American Energy Corporation ( HUSA), down 7.2%, PDC Energy ( PDCE), down 5%, and Torch Energy Royalty ( TRU), down 4.5%.
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Chesapeake Energy Corporation engages in the acquisition, exploration, development, and production of natural gas and oil properties in the United States. The company also offers marketing, midstream, drilling, and other oilfield services. Chesapeake Energy has a market cap of $11.84 billion and is part of the basic materials sector. Shares are up 7.2% year to date as of the close of trading on Tuesday. Currently there are nine analysts that rate Chesapeake Energy a buy, no analysts rate it a sell, and 18 rate it a hold.

TheStreet Ratings rates Chesapeake Energy as a hold. The company's strongest point has been its a solid financial position based on a variety of debt and liquidity measures that we have looked at. At the same time, however, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.

On the positive front, Cubic Energy ( QBC), up 21.3%, Saratoga Resources ( SARA), up 13.1%, Dejour Energy ( DEJ), up 10.5%, and New Concept Energy ( GBR), up 8.8%, were all gainers within the energy industry with BP ( BP) being today's featured energy industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the energy industry could consider Energy Select Sector SPDR ( XLE) while those bearish on the energy industry could consider Proshares Short Oil & Gas ( DDG).

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